Balance to Limit Ratios

Discussion in 'Credit Talk' started by chriscraft, May 30, 2001.

  1. chriscraft

    chriscraft Well-Known Member

    I know from having read numerous posts on this board that an important factor in one's FICO score is the ratio of open balance to credit limit. My question is this: Does this theory only apply to revolving accounts, or does it also apply to installment accounts? It would seem logical to me that it would apply largely to revolving accounts, since they are ones which have an open credit line which can be accessed on an ongoing basis, as opposed to installment accounts, which are fixed in amount and do not make additional credit available as payments are made. Any thoughts or comments?

    GEORGE Well-Known Member


    I assume that installment is figured differently than credit cards.
    A credit card you could max out and pay in full many times, but all you can do with a car loan is pay it down or pay it off then it is over.

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